So you're ready to renovate your home, but want to make sure that the money that you put in will lead to the best return? If several areas of your house need work, how do you even know where to begin? Your first thought may be to start with the kitchen or bathroom - which likely could use an update for most homes -but you might be surprised to learn that these projects are not the ones that will deliver the best return on your investment. We've looked at data gathered by the real estate experts at HomeLight to share the projects that will give you the most and least bang for your buck.
Best ROI
Deep cleaning
The easiest project could deliver the best return. Deep cleaning can not only help your home look its best, but it'll also add to your bottom line. If you spend $167 on a deep clean, you'll recoup on average $1,728, for a 935% ROI.
New wood floors
Adding that extra shine to your home can do wonders for your ROI. But sometimes a deep clean isn't enough and what you really need is to replace your flooring. The cost and ROI will depend on the size of your home, but the HomeLight report found that on average replacing wood floors will cost $4,338, and increase the sale price of your home to $6,555 for a 51% ROI.
Decluttering
If you haven't jumped on the Marie Kondo bandwagon, now might be the time. Decluttering, by donating or throwing away items that you aren't using, or as the KonMari method describes - aren't sparking joy - can add a light and airiness to your home. If you do decide to enlist the help of a service, even if you drop $486 on decluttering, you can expect to add $2,584 or, a 432% ROI.
Worst ROI
Kitchen upgrade
The kitchen may be the first place that you want to remodel, but how you do it can be key to getting the highest ROI. In a 2017 Remodeling Impact Report, the National Association of Realtors (NAR) found that on average, homeowners spend around $65,000 on a full kitchen renovation, but only see around a $40,000 ROI-that's only a 62% return, and some statistics say the return could even be as low as -.08%. What's better, is giving your kitchen a makeover that will make it sparkle and cost less, such as painting or refacing cabinets (an average of $600 to $1,000), replacing countertops (an average of $3,000), or upgrading hardware and faucets (about $500 each for faucets).
Bathroom renovation
At an average cost of $30,000, the ROI for a bathroom remodel is $15,000, which is only 50%, with some statistics stating that the return could be as low as -1%. If your bathroom is really in need of some TLC, you can opt for less expensive upgrades, similar to the actions you might take in the kitchen, like replacing faucets, fixtures, and mirrors. Cleaning or replacing grout can also do wonders.
Whatever you decide to focus on, start with a deep clean and declutter, and then work your way up to more involved tasks, to yield the best return on your investment.
